Transfer of property subject to mortgage

When a buyer obtains property subject to a mortgage, the buyer realizes the existence of the mortgage. As long as the buyer makes the mortgage payments, no problems arise. Suppose, however, that the buyer defaults. The seller is still liable for the debt and may elect to make the payments. If the seller does not make the payments, however, the lender will foreclose and the property will be sold. If the sale price is not adequate to pay off the debt, the seller, not the buyer, is liable for the deficiency.